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THE ROLE OF A REGIONAL DEVELOPMENT AGENCY IN THE IMPROVEMENT OF REGIONAL

TERRITORIAL POLICIES

SYMPOSIUM ON REGIONAL DEVELOPMENT AND GOVERNANCE

ANKARA 7TH SEPTEMBER 2006

Roberta Dall’Olio – ERVET, Head of EU Policies and International Cooperation Department

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EMILIA-ROMAGNA AT A GLANCE2004

ERER I TI T

Population 4.151.369 7,10%

Employment rate 68,3,% 57,4%

Total unemployment rate 3,7% 8,0%

Female activity rate 63,4% 51,3%

Female unemployment rate 5,0% 10,6%

GDP per head (€) 26.413 21.611

Active firms 420.401

Agriculture 77.843 companies (18,5%)

Industry 124.465 companies (29,7%)

Services 217.191 companies (51,8)

1 firm each 9,87 inhabitants

Employees in themanufacturing industry 521,00

Employees in Agriculture 5,1% Industry 36,0% Services 64,9%

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REGIONAL TOPOGRAPHY

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TOTAL EMPLOYEES IN INDUSTRY AND SERVICES SECTORS

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EMILIA-ROMAGNA POSITIONING AMONG A SELECTION OF EUROPEAN REGIONS

1995 2003

1 Brussels 38291,2 1 Inner London 60341,5

2 Inner London 38097,1 2 Brussels 51658,3

3 Hamburg 31340,5 3 Luxembourg 50843,6 4 Luxembourg 31144,8 4 Hamburg 40011,3

5 Wien 28327,9 5 Île de France 37687

6 Île de France 27426,8 6 Wien 37158,1

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Provincia Autonoma Bolzano-Bozen 25598,9 7 Berkshire, Bucks and Oxfordshire 35894

8 Darmstadt 25502,7 8 Provincia Autonoma Bolzano-Bozen 34791,5

9 Valle d’Aosta/ Vallée d’Aoste 25048,3 9 Oberbayern 34334,1

10 Oberbayern 25004,4 10 Stockholm 34331,2 … …… ….. …. ….. …. 15 Emilia-Romagna 23241,2 23 Emilia-Romagna 29058,9

Eurostat 2003: RER ranks 23rd (on a total of 256 regions NUTS II) in terms of GDP per capita in PPP

Fonte: Eurostat

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STRENGTHS

EntrepreneurshipKnowledgeSocial capital Quality of lifeServicesInfrastructuresPublic SystemPublic Policies

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INDUSTRIAL POLICY EMILIA-ROMAGNA REGION’S ROLE

1970 institution of Regions

delegated powers: agriculture, vocational training, handicraft, no competences on industrial matters

growing role of business associations and unions influencing local policy making

competition between national and regional models of governance encouraged innovative policies

crisis of large industries and birth of SMEs

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THE ORIGINS OF ERVET – THE 70S

CONTEXT

I. Changing Political and Institutional setting;

II. Changing economical environment

Emilia Romagna Regional Government founded ERVET (Regional Law n. 44 of 18/12/1973)

Policy of “infrastructured areas”: promoting new enterprises in disadvantaged areas by lowering the cost of access to premises and primary infrastructure

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THE EVOLUTION OF ERVET – THE 80S (1)

CONTEXT

I. Strong economic growth mainly due to SMEsII. Growing demand for specialized services by SMEsIII. poor development of services’ market and IV. entrepreneurial organisationsV. specialization of regional economy in specific

sectors (industrial clusters or districts)

ERVET’s mission was redefined (Regional Law 17/05/1982 n. 23)

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EMILIA-ROMAGNA: INDUSTRIAL DISTRICTS

PI ACENZA

RI MI NI

PARMA

REGGI O EMI LI A

MODENA

FORLI ’

BOLOGNA

FERRARA

RAVENNA

Machine tools

Farm machinery

Food processing

Textile-clothing industry

Stuffed furniture

Packaging machines

Ceramic products and machines for ceramic industry

Footwear

Biomedical products

Wood - processing machines

PI ACENZA

RI MI NI

PARMA

REGGI O EMI LI A

MODENA

FORLI ’

BOLOGNA

FERRARA

RAVENNA

Machine tools

Farm machinery

Food processing

Textile-clothing industry

Stuffed furniture

Packaging machines

Ceramic products and machines for ceramic industry

Footwear

Biomedical products

Wood - processing machines

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THE EVOLUTION OF ERVET – THE 80S (2)

POLICY OF “REAL SERVICES”

Delivered to the local manufacturing systems through the creation of

9 SERVICE CENTRES

Employees 1976 - CENTRO CERAMICO Ceramic tiles and machines 38 1981 - CITER Textile/clothing/apparel 12 1984 - CERCAL Shoes/apparel 5 1984 - CESMA Agricultural machinery 3 1986 - NUOVA QUASCO Construction 17 1986 - CERMET Quality certification 90 1986 - ASTER Technology transfer 30 1991 - DEMOCENTER Industrial automation 26

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THE EVOLUTION OF ERVET – THE 80S (3)

SERVICE BUSINESS CENTRES

Major Shareholders

, Business Associations, Private Companies, Local Public Authorities (Municipalities and Provinces), Chambers of Commerce

Services delivered Information and consultancy HR Training Product certification Process certification Market analysis and forecasts Marketing services Laboratory tests Technological transfer Product/process innovationInnovative activities and projects

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A NEW COMPETITIVE SCENARIO: THE 90S

Regional Law 13/05/1993 n. 25 gave ERVET the role of “tool for implementing regional economic policy” and focused its activity on the support of regional businesses in the domains of:

quality

innovative financial services

innovation and technological transfer

promotion of scientific/technologic centres of excellence

ERVET (Politiche per le Imprese Spa) pursued these objectives indirectly, promoting the constitution of business centres, public/private bodies and/or consortia, thus becoming a sort of “holding” for the financial and strategic management of the Business Centres, the ERVET SYSTEM.

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ERVET SYSTEM SOURCES OF FUNDING

ERVET SYSTEM TURNOVER 2002: € 30.475.585ERVET SYSTEM TURNOVER 2002: € 30.475.585

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ERVET SOURCES OF FUNDING

ERVET TURNOVER 2002: € 8.764.969

93%

3% 0%4%

Emilia-Romagna Regional Government

EU

Other public bodies

Private Sector (firms and industrial associations)

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RECENT DEVELOPMENTS

CONTEXT POLITICAL-AMDIMINISTRATIVE-DECENTRALISATION

Transfer of competencies from national to regional level

INDUSTRIAL POLICY

VOCATIONAL TRAINING

TERRITORIAL DEVELOPMENT

SERVICES’ MARKET GROWTH

PRIVATE COMPANIES

ENTREPRENEURIAL ASSOCIATIONS

NEW BUSINESSES’ PRIORITIES

APPLIED RESEARCH

TECHNOLOGY TRANSFER SERVICES

CONTEXT POLITICAL-AMDIMINISTRATIVE-DECENTRALISATION

Transfer of competencies from national to regional level

INDUSTRIAL POLICY

VOCATIONAL TRAINING

TERRITORIAL DEVELOPMENT

SERVICES’ MARKET GROWTH

PRIVATE COMPANIES

ENTREPRENEURIAL ASSOCIATIONS

NEW BUSINESSES’ PRIORITIES

APPLIED RESEARCH

TECHNOLOGY TRANSFER SERVICES

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NEW SUPPORT SYSTEM FOR REGIONAL ECONOMY

NEW LAW ON INNOVATION AND TECHNOLOGICAL

TRANSFER

CLOSER PARTNERSHIPS BETWEEN FIRMS, UNIVERSITIES AND

PUBLIC RESERCH BODIES

NEW ERVET’S STRATEGIC FOCUS

TECHNICAL ASSISTANCE TO REGIONAL AND LOCAL

GOVERNMENTS AS TO TERRITORIAL DEVELOPMENT AND

PLANNING POLICIES

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ERVET – Emilia-Romagna Valorizzazione Economica Territorio SpA

joint-stock company

established in 1974 by the Emilia-Romagna Regional Government Regional Law no. 44/1973 Regional Law no. 23/1982, Regional Law of reform no. 25/1993

and finally through: Regional Law of reorganisation no. 5/2003

• 3 year Agreement • 3 year Activity Plan• Annual Plan and Annual Working Plan

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OBJECTIVES (ART. 5 STATUTE)

The management system of ERVET is targeted at the best performance of the Regional Development Agency towards its main stakeholders, namely

Regional Government of Emilia Romagna,

Local authorities within the Region itself and

Private companies.

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BENEFICIARIES OF ERVET’S SERVICES

Regional Government of Emilia Romagna,

Local authorities within the Region itself

Regional territory

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CONTEXT-SPECIFIC FEATURES OF THE MANAGEMENT SYSTEM

The system was designed to cater for the specific characteristics of the institutional and economic profile of Emilia Romagna:

institutional level characterised by polycentrism

complex governance system,

vast majority of SMEs (lacking the necessary organisational and financial dimensions to develop sophisticated and high added value services within their own structures).

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KEY PLAYERS/ORGANISATIONS

The management system’s strategic goals are defined by the Assembly of Shareholders, while the Board of Directors actually runs the management system.

Employees and external consultants carry out day-to-day operations

Therefore, ERVET management system is implemented by

Board of Directors

Heads of Functions/Departments.

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KEY PLAYERS/ORGANISATIONS

President of the Board of Directors (who is also ERVETs legal representative) is responsible for the correct implementation of the system.

7 members of the Board of Directors + 3 members of the Board of Auditors + 9 Heads of Departments

ERVET’s organisational structure comprises 9 thematic departments grouped under 3 functions, each with a person in charge. In day-to-day operations though, multidisciplinary groups that cross cut the organisational structures prevail, because of the very nature of ERVET’s activities, that are mainly projects targeted at specific objectives.

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ERVET’S EXPERTISE

Focused on 4 main areas:

Centre of competence Integrator of systems Policy advisor Implementer of network

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ERVET’S MISSION

Is divided into 4 areas:

Operative technical support Targeted actions Partnerships and networks Observatories and analysis

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THE MODEL

Intensity of the relationship with stakeholders

contribution to analysis and elaboration of policies

low high

low

high

COMPETENCE PERFORMER

STRATEGIC ADVISOR

BODY RENTER

SYSTEM INTEGRATO

R

SYSTEM INTEGRATO

R

TECHNICALASSISTANT

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THE NEW REGIONAL LAW REFORMING ERVET (1)(Law 31/03/2003 n.5)

1. Realization of actions targeted to the promotion of sustainable development and to the environment qualification of the regional territory through:

Technical Assistance to ERR and to local Authorities in carrying out territorial development programmes

Promotion and co-ordination of initiatives and agencies focused on territorial development

Management of ERR actions aimed to interregional and international cooperation

Technical Assistance for programmes and projects of Development co-operation

Promotion of foreign direct investments in the regional territory.

1. Realization of actions targeted to the promotion of sustainable development and to the environment qualification of the regional territory through:

Technical Assistance to ERR and to local Authorities in carrying out territorial development programmes

Promotion and co-ordination of initiatives and agencies focused on territorial development

Management of ERR actions aimed to interregional and international cooperation

Technical Assistance for programmes and projects of Development co-operation

Promotion of foreign direct investments in the regional territory.

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THE NEW REGIONAL LAW REFORMING ERVET (2)(Law 31/03/2003 n.5)

Technical Assistance to ERR and to Local Authorities for the participation to initiatives of design and investment aimed to:

realization of systems and infrastructures for the economic development of the territory

promotion of PPP even through project finance

Technical Assistance to ERR and to Local Authorities for analysis and studies on regional economy and for the evaluation and monitoring of regional policies

2. Promotion and participation to investment fund initiatives and management-investment trusts aimed to territorial development projects

3. Acquisition of capital shares in companies in which Emilia Romagna Region holds stakes

Technical Assistance to ERR and to Local Authorities for the participation to initiatives of design and investment aimed to:

realization of systems and infrastructures for the economic development of the territory

promotion of PPP even through project finance

Technical Assistance to ERR and to Local Authorities for analysis and studies on regional economy and for the evaluation and monitoring of regional policies

2. Promotion and participation to investment fund initiatives and management-investment trusts aimed to territorial development projects

3. Acquisition of capital shares in companies in which Emilia Romagna Region holds stakes

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COMPANIES IN WHICH ERVET HOLDS:

A MINORITY SHARE

TETA S.r.l.- Centro italiano servizi dalla terra alla tavola (Parma) PROMO - Società per la promozione dell’economia modenese

(Modena) SIPRO SpA - Agenzia provinciale per lo sviluppo - Ferrara SOPRAE SpA - Società di promozione attività economiche (Piacenza)

(IN LIQUIDATION)

SOPRIP SpA - Local development Agency - (Parma) CITER - Centro innovazione tessile dell’Emilia-Romagna - Carpi (MO)

A MAJORITY SHARE

Nuova QUASCO - Qualità degli appalti e sostenibilità del costruire (Bologna)

ASSOCIATED COMPANIES

CERMET - Certificazione e ricerca per la qualità (Bologna)

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GENERAL PROGRAMME 2004-2006

BROAD LINES OF ACTIVITY

A. DESIGNING, MANAGING, MONITORING AND EVALUATING REGIONAL POLICIES FOR TERRITORIAL DEVELOPMENT

G. SUPPORT IN IMPLEMENTING DOCUP OBJECTIVE 2

B. CONCERTED PLANNING H. EUROPEAN POLICIES FOR TERRITORIAL DEVELOPMENT

C. SECTORAL TERRITORIAL POLICIES I. TERRITORIAL MARKETING

D. EUROPEAN, NATIONAL AND REGIONAL NETWORKS

J. PROJECT FINANCE

E. SUSTAINABLE DEVELOPMENT POLICIES K. ANALYSIS, STUDIES AND PILOT PROJECTS

F. REGIONAL E-GOVERNMENT POLICIES

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ANNUAL PROGRAMME 2005 (1)

A. DESIGNING, MANAGING, MONITORING AND EVALUATING REGIONAL POLICIES FOR TERRITORIAL DEVELOPMENT

A. 1 TA for mountain territory development

D. EUROPEAN, NATIONAL AND REGIONAL NETWORKS

D. 1 Coordination of local actions and pilot projects

A. 2 Planning of interventions for the territorial development, the monitoring and the evaluation

D. 2 Support in managing Networks of European Regions

B. PLANNING in PARTERSHIPB. 1 Concerted territorial planning and

improvement of Area Special Programmes

D. 3 Promotion, support and animation of TWINNING programme

C. SECTORAL TERRITORIAL POLICIES

C. 1 Support in designing regional logistics’ policy

D. 4 Support to RER in international cooperation

C. 2 Support in designing territorial tourism policies

C. 3 Local development and new partnership of local authorities

C. 4 Support in designing territorial agricultural policies

E. SUSTAINABLE DEVELOPMENT POLICIES

E. 1 Environmental sustainability, monitoring and evaluation of environmental policies

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ANNUAL PROGRAMME 2005 (2)

F. REGIONAL E-GOVERNMENT POLICIES

F. 1 Support in developing e-government programmes

H. 6 INTERREG III B – ESTIA SPOSE Project

G. SUPPORT IN IMPLEMENTING DOCUP OBJECTIVE 2

G. 1 Technical Assistance on RER DOCUP Objective 2

I. TERRITORIAL MARKETING

I. 1 Territorial mktg. and investments’ attraction

H. EUROPEAN POLICIES FOR TERRITORIAL DEVELOPMENT

H. 1 Information, training on EU policies

I. 2 Support for territorial mktg. at international level

H. 2 Promotion of RER at European level J. PROJECT FINANCE

J. 1 Developing project financing tools

H. 3 EU planning projects

H. 4 INTERREG III

K. ANALYSIS, STUDIES AND PILOT PROJECTS

K. 1 Regional economy’s scenarios and targeted analysis

H. 5 Support in implementation on S3 project founded by INTERREG III C East zone

K. 2 New indicators for development and analysis of economic impact of regional welfare state

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ERVET’S DEPARTMENTS

Territorial Policies

European Union Polices and International Cooperation

Sectoral Policies and Evaluation of Public Policies

Sustainable development and environment

Special Project Welfare

Professional Training Assessment

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ERVET’S COMPANY BODIES (1)

Shareholders’ Assembly

Board of Directors

President

Board of Auditors

COMPOSITION OF THE SHAREHOLDINGCOMPOSITION OF THE SHAREHOLDING

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ERVET’S COMPANY BODIES (2)

The Board of Directors

3 years

7 members (5 appointed by the Emilia-Romagna Region and 2 appointed by the General Assembly of the shareholders)

Daniele Alni – PresidentGiuseppina Gualtieri – General Manager

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ERVET TURNOVER 2004 € 7.126.945

Private Sector (firms andindustrial associations)2,3%

Other public bodies6,1%

EU5,6%

Emilia-Romagna Regional Government86,0%

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Thank you for your attentionGrazie per l’attenzione

Roberta Dall’OlioEU Policies and International Cooperation Unit

rdall’olio@ervet.it

politicheue@ervet.it

Tel. +390516450436

www.europafacile.net

ERVET – Emilia Romagna Valorizzazione Economica Territorio SpA

Via Morgagni, 6 40122 Bologna

tel. +39 051/6450411 www.ervet.it